What is the elasticity of demand of underage drinking

Reference no: EM13223284

Kean University Professor Henry Saffer and Wharton School of Business Professor Dave Dhaval estimated that if the alcohol industry increased the prices of alcoholic beverages by 100 percent underage drinking would fall by 28 percent and underage binge drinking would fall by 51 percent.
a. What is the elasticity of demand of underage drinking and binge drinking?
b. What might explain the differences in Elasticities?

Reference no: EM13223284

Questions Cloud

How many units of good y is each producer supplying : The market for Good Y, a perfectly competitive good, is made up of 15 producers who each produce the same amount of Good Y. If the price of Good Y is currently $100 and the total quantity supplied is 150, how many units of Good Y is each producer ..

What would be the combined effect of the summer events : Summer is traditionally a time of increased demand for oil because of the many families driving and flying to vacation sites. What would be the combined effect of these two events on the summer market for gasoline

Demonstrate a clear understanding of the topic : It should demonstrate a clear understanding of the topic and the relevant literature, concise written expression and evidence of extensive reading.

Compute the competitive equilibrium for the exchange economy : Consider the following exchange economy with two consumers and two goods. Consumer 1 has utility function u(x,y) = x1/2 y1/2 and initial endowments (ex,ey)=(1,0). Consumer 2 has utility function u(x,y) = x2 y and initial endowments (ex,ey)=(0,1).

What is the elasticity of demand of underage drinking : Kean University Professor Henry Saffer and Wharton School of Business Professor Dave Dhaval estimated that if the alcohol industry increased the prices of alcoholic beverages by 100 percent underage drinking would fall by 28 percent and underage b..

How would you evaluate astor in term of his motive : How would you evaluate Astor in term of his motive, his managerial ability, and his ethics? What lesson does his career teach about the relationship between virtue and success?

What quality of perfume that makes costs to produce : Acme Fragrance, a maker of fine perfumes, has a pricing problem. It makes perfumes in France, and the quality of perfume that it makes costs $40 per oz. to produce. Acme sells its product in two markets, France and the U.S. Extensive research.

How long is the line : How long is the line, and how much time do students spend waiting, on average?

Why the market for sweaters is perfectly competitive : Suppose that the market for sweaters is perfectly competitive. The graph below shows the cost curves of a typical manufacturer in the market. Use the blue rectangle (circle symbols) to shade the profit that the manufacturer makes at a market price..

User Account

All Pages